Where we're At...

Well folks are we about to blast off or not?

That seems to be the question.
The SPX closed marginally above its January-April trading range on Friday on below-average volume.The SPX continues to flirt with both horizontal resistance and with the upper limit of a developing "bearish ascending wedge." If 1400 and the upper limit of the wedge aren't broken soon, then a test of the lower limit of the wedge would appear imminent, now near 1375.

The NDX has broken horizontal resistance, up and out of its Jan-April trading range. The index is flirting with the upper limit of its rising trend zone, so a pullback to test the lower regions of the zone would by no means be a surprise. The other alternative would be a parabolic upside move, up and out of the zone. Given the light volume on the breakout, this would seem less likely but with buyouts like this morning helping and checks in the mail we may have hit our upwards air pocket here for a quick sprint. Fingers crossed.

On the buy front today is a hard day. VM Ware is up $2 and if you go to check it's fundamental s at street.com all it's mving averages are sloping up somehow although the stock is beneath them.. this is the type of power stock you may want to take a ride on for this final push up.

On NotableCalls this caught me eye
Morgan Stanley is upgrading Momenta Pharma (NASDAQ:MNTA) to Overweight-V and increasing their target to $22. Firm believes the stars could be finally aligning for the FDA approval of MNTA/NVS’s M-Enox in 2008-09 as the only genericversion of SNY’s Lovenox (blood thinner), potentially leading to: 1) 40-50% share of the $1.5+ billion U.S. Lovenox market, 2) peak potential earnings of $3/sh and 3) a share price of $40+. The downside risk of a long delay or non-approval is that the stock returns to $6.

Why are they upgrading now? Firm believes that the heparin (a complex sugar) contamination crisis may have given MNTA the unique opportunity to prove to the FDA its proprietary technology for characterizing complex sugars. Last week’s Nature publication shows that MNTA worked with the FDA to identify the heparin contaminant. They view this work as a game changer, underestimated by the Street. In our opinion, the FDA is now more likely to view MNTA’s technology as sufficient to show that M-Enox is the same as Lovenox (also a complex sugar) — a key regulatory hurdle and one they feel competitors Teva and Amphastar cannot achieve.

Notablecalls: This is a game-changing upgrade for this stock. Morgan Stanley has been neg on MNTA for quite some time (UW rating) and now they are saying the stock could do $35+ under bullish scenario.

The NC crew missed the fact that a news release further down shows MNTA announcing a presentation at.... of course Morgan. It's always hard to figure out the order of these things is the presentation set and then as luck would have it herceptin gets tainted or does the Co have a story to tell now... the fact that the co worked with the FDA in the emergency lends major creed to their case in my view. Perhaps sometime between today and the presentation Wed this could be bought for a nice hold. Big price target.

Other than that I'm seeing very little going on. My favorite police camera stock Digital Angel is reporting this week, they have in the past had blow out numbers. I have a small position and am entertaining the thought of buying more today... DGLY going to $14 I hope....

Hard to get going this week after the NFL draft!
I'm only giving the Giants a B or B- and I'm catching a lot of flack. ~ stoney

 

I don't think there is a single person on this forum that reads your rambling posts to its entirety.

 

Folks URGENT UPDATE I bought an itty bitty bit of MNTA yesterday and this news broke overnight,--

Momenta Pharmaceuticals announced that the FDA has provided guidance regarding the Abbreviated New Drug Application for M-Enoxaparin. Momenta is developing M-Enoxaparin, a technology-enabled generic version of Lovenox, in collaboration with Sandoz, the generics division of Novartis AG. Earlier this year, Momenta and Sandoz submitted a proposal to FDA for addressing the potential munogenicity of M-Enoxaparin, in response to FDA's letter of November, 2007. On April 28, 2008, FDA responded to the proposal and provided additional guidance which indicated their general concurrence with the Company's approach and proposal. FDA also requested additional data from in vitro and in vivo animal tests, the testing of additional samples for tests previously proposed, and additional information regarding certain of the methods proposed. The agency has not requested human clinical trials at this time.

This is HUGE for MOMENTA if we get a soft open on this name JUMP IN! I will be looking carefully at the opening and contacting my hedge fund at 9:31... We have a company analyst meeting today as well.... ~ stoney

 

I suppose " not requested human trials " can be taken two ways... that's probably the hesitation this morning on MNTA, I'm hoping management can clarify today.

Europe reverses after our GDP!.
European stock markets rebounded into the green on the better than expected U.S. GDP reading. The FTSE is now up 0.2% after being down as much as 0.9% in earlier trade.....

If we have a big day that will set China off tonight. Fasten your seatbelts dears.... it's going to be a bumpy ride. ~ stoney